Geographic Salary Arbitrage
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A discussion about how to maximize wealth by leveraging salary differences between high-cost coastal cities and lower-cost areas in the US.
Income Requirements by Location
- Top 1% income requirements vary dramatically by state:
- California/New York: $850,000+
- Connecticut: $930,000 (highest)
- West Virginia: $370,000 (lowest)
- Idaho/South Carolina: ~$500,000
Key Strategy Points
- Get remote work from high-paying coastal companies
- Move to lower-cost areas while maintaining high salary
- Focus on being a "big fish in a small pond"
- Target locations with good quality of life but lower costs
- Examples: Charlottesville, Boise, Florida
Financial Reality in High-Cost Areas
- $800k salary in NYC/California:
- ~$456k post-tax
- $15-20k monthly expenses is "reasonable"
- Need to save $200k/year for 20 years to retire
- Living like a "plebe" despite high income
Recommended Alternative Markets
- Florida benefits:
- No state income tax
- No need for winter clothing
- Affordable dining (example: cheap seafood)
- Coastal lifestyle at fraction of cost
- "Floribama" region:
- Combines Alabama prices with Florida coast
- Significantly lower cost of living
- Maintains beach lifestyle
Key Takeaway
- High salaries in expensive cities often provide less actual wealth than moderate salaries in affordable areas
- Focus on maximizing purchasing power rather than gross income
- Consider lifestyle benefits alongside cost savings when choosing location
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.